ENGINEERING.com Announces Q4 and FY 2006 Results
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ENGINEERING.com Announces Q4 and FY 2006 Results

TORONTO, ONTARIO -- (MARKET WIRE) -- Mar 21, 2007 -- ENGINEERING.com Incorporated (TSX VENTURE: EGN), developer of the ENGINEERING.com online resource and business for engineers today announced its financial results for the fourth quarter and year ended December 31, 2006.

ENGINEERING.com revenue was $2,295,301 for the fiscal year 2006, representing a 30% increase compared to revenue of $1,759,077 for the year 2005. Revenue for the three months ended December 31, 2006 was $563,969 compared to $529,855 for the fourth quarter of 2005. The net loss for the year ended December 31, 2006, totaled ($262,090) and ($0.01) per Common Share compared with a net loss of ($631,858) and ($0.02) for the same period a year ago.

Operating income (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was $20,253 or $0.00 per Common Share for the fourth quarter of 2006 compared with a operating loss of ($111,468) or ($0.00) per Common Share for the three month period ended December 31, 2005. Operating income for fiscal 2006 was $30,477 or $0.00 per Common Share compared to an operating loss of ($535,664) or ($0.02) per Common Share for fiscal 2005. The operating expenses in the latest period were $354,683 and for the year were $1,523,000 compared to $451,586 for the fourth quarter a year earlier and $1,698,295 for fiscal 2005.

The increase in revenues is attributed to both the full year impact of the Company's outsourcing services provided to RAND Worldwide, which began in July 2005, and an increase in sales of engineering software and services to the commercial and education markets in North America. These engineering solutions are sold on an annual basis such that customers typically make these purchases each year.

"We are pleased to report both increasing revenues and decreasing operating expenses during the year. Our customer base for engineering solutions continues to grow, which bodes well for future periods as the 2006 sales come up for renewal," said John Hayes, President of ENGINEERING.com. "During the fourth quarter of 2006 we also launched a number of new services to support our online community of engineers. I look forward to reporting on the growth of that community in 2007."

As at December 31, 2006, the Company had a cash balance of $187,190 compared to a cash balance of $179,347 as at December 31, 2005.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE: EGN) is the developer-owner of the www.ENGINEERING.com Web site and Internet-based software and business. ENGINEERING.com offers hosted and deployed engineering software and services to manufacturers, design consultants and engineering academia around the world. The ENGINEERING.com Incorporated head office is located in Mississauga, Ontario, Canada and can be reached toll-free at 1-877-997-9917, by facsimile at 905-273-6691 or through the Internet at www.ENGINEERING.com.

EBITDA

EBITDA is defined by the Company as operating income before interest expense, income taxes, amortization, stock-based compensation, asset dispositions and provision for discontinued operations. The Company has included information concerning EBITDA because it believes that EBITDA is used by certain investors as one measure of the Company's financial performance. EBITDA is not a measure of financial performance under Canadian generally accepted accounting principles and is not necessarily comparable to similarly titled measures used by other companies. EBITDA should not be construed as an alternative to operating income or to cash flows from operating activities (as determined in accordance with Canadian generally accepted accounting principles) as a measure of liquidity.

Forward Looking Statements

This press release may contain forward-looking statements based on management's current projections, beliefs and opinions at the date of this press release. Actual results could differ materially from those anticipated in these statements. ENGINEERING.com Incorporated undertakes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change.

The contents of this News Release have been reviewed and approved by the Audit Committee and the Board of Directors.


ENGINEERING.com Incorporated
Balance Sheets

(Cdn. $)

                                             (audited)            (audited)
                                                As at                As at
                                    December 31, 2006    December 31, 2005
---------------------------------------------------------------------------
ASSETS
Current Assets
 Cash                                         187,190              179,347
 Accounts Receivable                          209,012              148,041
 Prepaid Expenses and Deposits                 55,938               60,258
 Due from Related Parties                     232,470              204,327
 Notes Receivable - Short Term                     --              296,363
---------------------------------------------------------------------------
  Total Current Assets                        684,610              888,336

 Property and Equipment, net                   32,300               55,289
 Intangible Assets, net                       948,598            1,127,134
---------------------------------------------------------------------------
  TOTAL ASSETS                              1,665,508            2,070,759
---------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
-----------
Current Liabilities
 Accounts Payable and Accrued Liabilities     511,706              504,964
 Deferred Revenue                              30,725               76,680
 Promissory Note - Short-term                 160,812              246,887
---------------------------------------------------------------------------
  Total Current Liabilities                   703,243              828,531

 Promissory Note - Long Term                  155,763              250,935

---------------------------------------------------------------------------
  TOTAL LIABILITIES                           859,006            1,079,466
---------------------------------------------------------------------------

SHAREHOLDERS' EQUITY
--------------------
 Share Capital                             14,759,008           14,759,008
 Contributed Surplus                          268,314              191,015
 Deficit                                  (14,220,820)         (13,958,730)
---------------------------------------------------------------------------
  TOTAL SHAREHOLDERS' EQUITY                  806,502              991,293
---------------------------------------------------------------------------

---------------------------------------------------------------------------
  TOTAL LIABILITIES AND SHAREHOLDERS'
   EQUITY                                   1,665,508            2,070,759
---------------------------------------------------------------------------



ENGINEERING.com Incorporated
Statements of Income

(Cdn. $)
                   (unaudited)    (unaudited)      (audited)      (audited)
                 Three Months   Three Months           Year           Year
                        Ended          Ended          Ended          Ended
                Dec. 31, 2006  Dec. 31, 2005  Dec. 31, 2006  Dec. 31, 2005
---------------------------------------------------------------------------

Revenue               563,969        529,855      2,295,301      1,759,077
Cost of Sales         189,033        189,737        741,824        596,446
---------------------------------------------------------------------------
GROSS PROFIT          374,936        340,118      1,553,477      1,162,631

Expenses
 Salaries &
  Benefits            194,574        253,526        835,444        962,784
 Marketing
  Expenses              3,772         10,600         10,533         39,529
 Development
  Costs                72,309         65,648        277,876        218,983
 General &
  Administrative       84,028        121,812        399,147        476,999
---------------------------------------------------------------------------
                      354,683        451,586      1,523,000      1,698,295
---------------------------------------------------------------------------

Operating
 Income/(Loss)
 before Under-
 noted Items:          20,253       (111,468)        30,477       (535,664)
  Disposal of
   Capital Assets          --        158,936             --        158,936
  Stock Based
   Compensation       (15,955)       (22,748)       (77,299)       (64,760)
  Amortization
   Expense            (51,823)       (67,469)      (220,266)      (190,370)
  Other income
   - tax recovery     (11,002)            --          4,998             --
---------------------------------------------------------------------------
Net Loss              (58,527)       (42,749)      (262,090)      (631,858)
---------------------------------------------------------------------------

Basic and
 Diluted (Loss)
 per Share              (0.00)         (0.00)         (0.01)         (0.02)

Weighted Average
 Number of Common
 Shares (basic
 and diluted)      29,496,499     29,496,499     29,496,499     28,466,201
---------------------------------------------------------------------------

Consolidated
 Statements of
 Deficit
---------------------------------------------------------------------------
  Deficit,
   beginning
   of period      (14,162,293)   (13,915,981)   (13,958,730)   (13,326,872)
---------------------------------------------------------------------------
  Net Income
   (Loss)             (58,527)       (42,749)      (262,090)      (631,858)
  Deficit,
   end of
   period         (14,220,820)   (13,958,730)   (14,220,820)   (13,958,730)
---------------------------------------------------------------------------
---------------------------------------------------------------------------



ENGINEERING.com Incorporated
Cash Flow Statements

(Cdn. $)
                   (unaudited)    (unaudited)      (audited)      (audited)
                 Three Months   Three Months           Year           Year
                        Ended          Ended          Ended          Ended
                Dec. 31, 2006  Dec. 31, 2005  Dec. 31, 2006  Dec. 31, 2005
---------------------------------------------------------------------------

OPERATING
 ACTIVITIES

 Net Income
  (Loss)              (58,525)       (42,749)      (262,090)      (631,858)
  ADD - Items
   Not Affecting
   Cash
    Stock Based
     Compensation      15,955         22,748         77,299         64,760
    Amortization       49,105         67,469        217,549        190,370
  Changes in
   operating
   assets and
   liabilities
   other than
   cash                   586        (56,872)      (124,007)       115,226

---------------------------------------------------------------------------
  CASH FROM
   OPERATING
   ACTIVITIES           7,121         (9,404)       (91,249)      (261,502)
---------------------------------------------------------------------------

FINANCING
 ACTIVITIES

  Promissory
   Notes              (64,396)       (24,283)      (178,530)       (36,426)

---------------------------------------------------------------------------
  CASH FROM
   FINANCING
   ACTIVITIES         (64,396)       (24,283)      (178,530)       (36,426)
---------------------------------------------------------------------------

INVESTING
 ACTIVITIES
  Note Receivable      74,091         74,091        296,363        308,711
  Additions to
   Property and
   Equipment          (10,258)        (1,774)       (18,741)        (7,775)
  Additions to
   Intangible
   Assets                  --             --             --        (54,883)

---------------------------------------------------------------------------
  CASH FROM
   INVESTING
   ACTIVITIES          63,832         72,317        277,622        246,053
---------------------------------------------------------------------------

Net Increase
 (Decrease) in
 Cash                   6,557         38,630         (7,843)       (51,875)

CASH, beginning
 of period            180,633        140,717        179,347        231,222
---------------------------------------------------------------------------

CASH, end
 of period            187,190        179,347        187,190        179,347
---------------------------------------------------------------------------


The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts:
ENGINEERING.com Incorporated
John Hayes
President & CFO
(905) 273-9991, ext. 280 or Toll Free: 1-877-997-9917
(905) 273-6691 (FAX)
Website: 
www.engineering.com